Fannie Mae Redemption

WASHINGTON, October 14, 2011 /PRNewswire/ --

Fannie Mae (OTC Bulletin Board: FNMA) will redeem the principal amounts indicated for the following securities issues on the redemption dates indicated below at a redemption price equal to 100 percent of the principal amount redeemed, plus accrued interest thereon to the date of redemption:

        Principal  Security Interest     Maturity        CUSIP    Redemption
         Amount      Type     Rate         Date                      Date
       $54,837,000   MTN     2.660%    July 24, 2017   3136FM3E2  October 24,
                                                                     2011
       $50,000,000   MTN     1.350%    June 24, 2014   3136FPFR3  October 24,
                                                                     2011
       $25,000,000   MTN     1.450%  October 24, 2014  3136FRLQ4  October 24,
                                                                     2011
    $1,000,000,000   MTN     1.000%   April 25, 2014   3136FPSH1  October 25,
                                                                     2011
      $250,000,000   MTN     0.750%  October 25, 2013  3136FPST5  October 25,
                                                                     2011
      $250,000,000   MTN     1.000%   April 25, 2013   3136FRHD8  October 25,
                                                                     2011
       $50,000,000   MTN     1.100%  October 25, 2013  3136FRJG9  October 25,
                                                                     2011
       $25,000,000   MTN     2.250%  October 26, 2016  3136FJJU6  October 26,
                                                                     2011
       $50,000,000   MTN     0.850%    July 26, 2013   3136FPQG5  October 26,
                                                                     2011
       $72,655,000   MTN     1.750%  October 26, 2015  3136FPQY6  October 26,
                                                                     2011
       $50,000,000   MTN     1.375%  October 26, 2015  3136FPQZ3  October 26,
                                                                     2011
       $50,000,000   MTN     2.500%   April 26, 2021   3136FRGS6  October 26,
                                                                     2011
       $50,000,000   MTN     2.000%  December 26, 2014 3136FRHE6  October 26,
                                                                     2011

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of Fannie Mae. Nothing in this press release constitutes advice on the merits of buying or selling a particular investment. Any investment decision as to any purchase of securities referred to herein must be made solely on the basis of information contained in Fannie Mae's applicable Offering Circular, and that no reliance may be placed on the completeness or accuracy of the information contained in this press release.

You should not deal in securities unless you understand their nature and the extent of your exposure to risk. You should be satisfied that they are suitable for you in light of your circumstances and financial position. If you are in any doubt you should consult an appropriately qualified financial advisor.